Eurozone’s Industrial Production increased more than expected in May, the official data published by Eurostat showed on Wednesday, suggesting a gradual upturn in the bloc’s manufacturing sector activity.

The industrial output in the old continent arrived at 0.8% MoM vs. a 0.3% rise expected and 0.5% last.

On an annualized basis, the industrial output rose by 1.6% in May versus a 0.3% growth expected and April’s -2.5%.

FX implications

The shared currency finds support from the upbeat Eurozone industrial figures.

At the time of writing, EUR/USD is trading flat on the day at 1.0035.

About Eurozone Industrial Production

Industrial Production is released by Eurostat. It shows the volume of production of Industries such as factories and manufacturing. Uptrend is regarded as inflationary which may anticipate interest rates to rise. Usually, if high industrial production growth comes out, this may generate a positive sentiment (or bullish) for the EUR, while low industrial production is seen as a negative sentiment (or bearish).